The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures.

Question

Quizplus · Accepted Answer

The multiplier effect refers to the increase in induced consumption expenditures that result from an initial increase in autonomous expenditures. Autonomous expenditures refer to initial changes in investment, government spending or net exports that occur independent of changes in disposable incomes. Therefore, option B is the correct choice as it correctly defines the multiplier effect as the series of induced increases in consumption expenditures resulting from an initial increase in autonomous consumption expenditures.

The Multiplier Effect Is the Series of ________ Increases in ________

The Multiplier Effect Is the Series of Increases in